Nearly half of employers across Australia said their employees have been requesting upskilling and professional development opportunities, HR consulting firm Robert Half reported in 2023.

According to the study, most employers preferred upskilling and reskilling their existing staff rather than hiring new ones amid the current talent shortage in the country. 

“While the chronic skills shortage continues, employers understand that investing in upskilling programs could answer their talent deficit woes,” said Nicole Gorton, Director at Robert Half.

The best way to launch an upskilling campaign in an organisation is by establishing an effective performance feedback system as this could help identify strengths, weaknesses, and points for improvements in the employee. 

READ MORE | Continuous learning and employee performance

Effective performance feedback

Effective performance feedback is the cornerstone of employee development, fostering professional growth and overall organisational success. Constructive feedback drives job satisfaction, retention rates, and overall productivity. 

But it’s not just about the frequency of feedback. Often, it’s all about the quality. A study by Textio, an augmented writing software platform, found that 63% of employees are likely to quit if they always get low-quality feedback. 

In truth, constructive feedback goes beyond merely pointing out areas for improvement. It catalyses motivation, engagement, and skill refinement. When provided with insightful feedback, employees gain clarity on their strengths and opportunities for development, paving the way for a more targeted and purposeful professional journey.

One of the primary benefits of constructive feedback is its impact on employee morale and job satisfaction. When employees feel acknowledged for their accomplishments and receive guidance on areas that need improvement, they are more likely to stay motivated and committed to their roles. This, in turn, contributes to a positive and thriving work culture where individuals are empowered to reach their full potential.

READ MORE | 64% employees see performance reviews as 'partial or complete waste of time'

Moreover, constructive feedback aligns employee performance with organisational goals. By providing specific and actionable insights, leaders can ensure that individual efforts contribute to the broader success of the company. This alignment fosters a sense of purpose among employees, as they understand how their work directly contributes to achieving overarching business objectives.

In employee development, constructive feedback is a valuable tool for skill enhancement. Through targeted feedback, employees can identify areas where additional training or support is needed, leading to a continuous cycle of learning and improvement. This iterative process benefits individual employees and contributes to the organisation's overall agility and adaptability in a rapidly changing business environment.

Crafting effective performance metrics and goals

To maximise the use of constructive performance feedback for employee improvement, leaders must carefully craft relevant metrics and goals. They must understand that, more than just quantitative indicators, performance metrics provide meaningful insights into an employee's contribution to the company's success. 

Effective metrics involve carefully considering key performance indicators relevant to the role and reflective of the organisation's strategic priorities. For instance, revenue generation, customer satisfaction, or project completion might be critical KPIs for different roles within the same company.

Setting SMART goals is fundamental to the success of any performance improvement initiative. Specificity ensures clarity, measurability allows for objective assessment, achievability sets realistic expectations, relevance aligns goals with broader objectives, and time-bound constraints provide a sense of urgency. Leaders must collaborate with employees to establish goals that challenge and inspire growth while remaining attainable within a specified timeframe.

Crucially, effective performance metrics and goals create a roadmap for professional development. They are a compass, guiding employees toward skill enhancement, career progression, and organisational contribution. Regularly revisiting and adjusting these metrics ensures they align with the evolving needs of the employee and the business.

Furthermore, transparent communication about performance metrics fosters a culture of accountability. Employees who understand how their performance is measured are more likely to take ownership of their development, proactively seeking opportunities for improvement.

READ MORE | Shifting paradigms in performance management

Implementing a continuous feedback loop

The traditional annual performance review gives way to a more dynamic and responsive approach—implementing a continuous feedback loop that fosters ongoing improvement. The shift toward constant feedback acknowledges that professional development is not a once-a-year event but a continuous journey. 

Real-time feedback allows employees to receive insights on their performance promptly, enabling them to make immediate adjustments and improvements. This agile feedback loop is particularly crucial in fast-paced industries where the ability to adapt quickly to changing circumstances is a competitive advantage.

Implementing a continuous feedback loop involves creating channels for open communication between employees and managers. This can take the form of regular one-on-one meetings, project debriefs, or even the integration of feedback tools and software. The goal is to create an environment where feedback is constructive, specific and focused on both strengths and areas for improvement.

Moreover, ongoing feedback promotes a culture of transparency and collaboration. Employees feel more connected to their work and the organisation when they receive regular insights into how their contributions align with broader goals. This transparency fosters a sense of trust and engagement, crucial elements for employee satisfaction and retention.

To ensure the success of a continuous feedback approach, organisations must invest in training managers to deliver feedback effectively. Managers play a pivotal role in shaping the feedback culture within a team, and their ability to provide constructive, actionable insights is instrumental in driving employee improvement.

READ MORE | How to conduct an effective performance appraisal

The art of delivering feedback: Dos and don'ts

Effective feedback delivery is an art that requires finesse and empathy. How feedback is communicated can significantly impact its reception and subsequent impact on employee improvement. Here are some dos and don'ts of delivering feedback to ensure it is constructive, motivational, and conducive to professional growth:

Dos:

1. Be specific and objective

Provide clear, specific feedback that is tied to observable behaviours or outcomes. This ensures that employees understand exactly what aspects of their performance require attention or recognition.

2. Balance positive and constructive feedback

Acknowledge and celebrate achievements and strengths while addressing areas for improvement. Balancing positive and constructive feedback creates a well-rounded perspective and motivates employees to build on their successes.

3. Focus on behaviour, not personality

Frame feedback regarding specific behaviours or actions rather than making it about the individual's personality. This helps prevent defensive reactions and keeps the conversation focused on professional development.

4. Encourage two-way communication

Foster an open dialogue by encouraging employees to share their perspectives and insights. This promotes a collaborative atmosphere where both parties contribute to finding solutions and setting goals.

5. Provide actionable steps for improvement

Clearly outline steps or strategies for improvement. Offer support, resources, or training if necessary to empower employees to address identified areas for development.

Don'ts:

1. Avoid generalisations

Steer clear of vague or generalised feedback that lacks specificity. Instead, provide concrete examples to illustrate your points and facilitate a deeper understanding.

2. Refrain from personal attacks

Critique behaviours or performance, not the individual. Avoid using language interpreted as a personal attack, which can hinder trust and damage professional relationships.

3. Don't delay feedback

Timeliness is crucial. Delayed feedback may lose relevance or impact. Provide feedback promptly after observing the behaviour or performance in question.

4. Avoid one-way communication

Feedback should be a two-way street. Avoid a top-down approach where managers dictate improvement strategies. Instead, engage in a collaborative discussion that involves both parties.

5. Steer clear of overwhelming criticism

While addressing areas for improvement, avoid overwhelming employees with excessive criticism. Balance negative feedback with positive reinforcement to maintain motivation and morale.